Why would a debtor choose to file chapter 13 over chapter 7?
• The debtor owns nonexempt property that would be liquidated in chapter 7. • The debtor is behind on car or house payments and needs to cure arrears over time. • Under certain circumstances a debtor may be able to modify a secured debt such as a vehicle or mobile home. • The debtor is not eligible to file a chapter 7 or to obtain a chapter 7 discharge. • The debtor owes debts that can be discharged in chapter 13 but not chapter 7. • The debtor seeks to protect a codebtor from legal action. • The debtor may have the need for bankruptcy relief for future bills and wants to hold open the possibility for conversion or refiling [e.g. anticipated medical bills]. How much is the debtor required to repay general, unsecured creditors in chapter 13? It depends on the debtor’s disposible income and how much the creditor would have received had the case been filed under chapter 7. It could range between 0%-106% based on the on those factors. Is the debtor required to undergo a credit counseling p
